Government Procurement Policy Function Research

The core of public expenditure management is rational distribution and effective utilization of public resources, as an effective measure of modern government budget implementation management, the government procurement has a history of over200years in western countries. For now, the world advanced developed countries have established a sophisticated legal system of government procurement to regulate their government purchasing behavior, in order to give better play to the functions of government at economic management. In different periods of each country, policy functions of the government procurement system show various forms of expression. Originally, government procurement system just a part of each country’s financial budget management system, the goal of which is to save the financial funds and improve the efficiency of purchase. With the growth of financial revenue scale and the expansion of government intervention, gradually, policy functions of the government procurement have recognized as an important economic and social adjustment measure for all countries, to achieve economic and social policy objectives.In our country, the institutional building of government procurement system is mainly from the point of view of regulating procedures of government procurement, promoting fair competition among enterprises, as well as boosting combat corruption and building a clean government. Producing policy functions of government procurement has been considered, but the specific conditions of how to implement it is lacked, thus weaken its regulation and control effects. At present, our country puts forward that further transforming a mode of economic development drove by investment and export, adjusting economic structure, and promoting the economic development soundly and fast, the exertion of government procurement policy functions cannot be neglected. Especially under the background of the world economy is still not out of the woods, trade protectionism re-emerges in countries, and China has started participate in the negotiations of Government Procurement Agreement. It’s a great urgent time to lucubrate to the policy functions of government procurement, give play to the regulation and control functions of government procurement, in order to promote the development of domestic industry.This dissertation will take the policy functions of government procurement into the overall views of public expenditure functions. It will analyze the necessity and feasibility of economic and social functions of government procurement form various points of view including the Western Economics, Public Economics, Institutional Economics, and the Industry Economics. Based on summarizing practical experience of government procurement policy functions in our country, and comparative analyzing of government procurement policy functions in western countries, this dissertation offered advices and suggestions in terms of enriching and completing the government procurement policy functions further more in our country.This dissertation is composed of six chapters.The first chapter discuses the background and significance of this subject, summarizes research results of government procurement policy functions in both domestic and abroad, proposes the research framework and the train of thought of this dissertation. Points out the functions of government procurement are mainly including the efficiency functions, the standard functions, and the policy functions. The research framework of this dissertation is center on the policy functions of government procurement, discourse the theoretical principle, achievement way, practical experience, countermeasures, and suggestions of how to produce policy functions of the government procurement.The second chapter discusses the necessity and feasibility of producing the policy functions of government procurement. Reveals that:government procurement policy is the inevitable result of the development and evolvement of government procurement system, which decides the necessity of government procurement policy functions are the public profit, the market failure in economic and social field, as well as the urgent demand of economic development and transformation in our country; the expansion of the public expenditure scale and the establishment of government procurement system provide the realistic conditions for the producing of government procurement policy functions; the policy functions of government procurement should be coordinated with the efficiency functions and fair competition; the government procurement policies are the part of public policies, they have the unique policy characteristics and policy tool functions.Chapter3analyzes the effects of the government procurement policies comprehensively in such as the allocation of resources, domestic industry development, independent innovation, energy conservation and environmental protection, small-and medium-sized enterprises development. Proposes that government procurement can reduce the uncertainty of the independent innovation; promote the demand and supply of independent innovation; encourage enterprises to innovate, and promote the upgrading of traditional industries and transformation of scientific and technological achievements. Government procurement have significant strategic functions in promoting green purchasing and green consumption, as well as supporting small-and medium-sized enterprises development.Chapter4analyzes the practice, performances, and the shortages which including the reasons of the government procurement policy in our country. The government procurement policies in our country didn’t give.enough support of domestic industry development; the independent innovation procurement policy be stopped midway, the procurement policy functions of energy conservation and environmental protection have just appeared; and the policy support for small-and medium-sized enterprises has initial established. There are various aspects of reasons lead to the consequence that the government procurement policy functions are not play a better role in our country, which mainly including not pay enough attention in mind, the pojicy goal is not clear, the institution and supervision system are not perfect, and the polices are lack of maneuverability and so on.Chapter5analyzes the government procurement policies of international organizations and several countries such as the United States, Britain, Australia, Japan, and South Korea, reveals the common characteristic of government procurement in each country is to curtail expenditures while to take account of the economic and social development.Chapter6put forward suggestions to complete measures of government procurement in our country. First of all, we should deepen the recognition of the importance of government procurement policy functions, and promote the producing of government procurement policy functions actively; secondly, we should complete the policy measures of government procurement in promoting development of domestic industry, promoting innovation of technology, strengthening the green purchasing, as well as supporting development of small-and medium-sized enterprises; thirdly, we should establish a scientific and reasonable management system which can promote the government procurement policy functions play a better role; fourthly, we should establish a better supervision system to promote the government procurement policy functions play a better role; in the last place, in the international situation of opening government procurement market, we should respond to this situation actively, take full advantage of international rules to protect and develop ourselves, improve competitiveness of domestic industries continuously.